Will the gold price have another ‘funky friday’ today?
The chart pattern for the gold price has been rather unmistakable the past few weeks. Gold shoots up 1-2% (usually on a Friday afternoon), consolidates sideways for 5 or so days, then rallies up another 1-2%.
The only exception to this has been last thursday when Ben Bernanke announced that the printing presses would now run limitlessly, to which the gold price responded by putting on about $50 in a matter of minutes, and we’ve been effectively going sideways ever since.
Gold’s stairway to heaven the past few weeks:
The action this week certainly suggests that another ‘pop’ higher later today is on the cards. As we pointed out this week the gold price has been in a very tight range. $1777 marking the top and $1755 marking the bottom, with the price see-sawing between those two points all this week.
Today the gold price has got back to the top of that trading range and is currently trading around the $1775 level. It wouldn’t take much of a push by the bulls at some point today to break through that $1777 level at which point $1800 will come clearly in to view.
Longer term gold:
On a longer term chart you can see clearly why this level is being defended by the bears – it’s really the last main resistance level before that $1920 from Augusts will loom large in the eyes of the bulls.
In terms of € gold it is a similar story, except the top of the range is marked at the all time high level. A close anywhere above $1357 today would mean another all time weekly closing high for gold priced in €s.
As for £ gold it continues being the laggard, something that will change no doubt in the next coming months if we are right and John Major is wrong and the Bank of England do their own version of QEinfinity.
- Last friday’s gold price rally following through this week
- Groundhog Friday: Gold price closes at similar level to the previous 10 weeks
- Gold price rally showing good follow through strength today – up 3.5% on the week
- Gold price softer today after closing at the top of its ‘box’
- Gold price levels all holding today despite early dip
Link to this article: : http://www.goldmadesimplenews.com/gold/will-the-gold-price-have-another-funky-friday-today-8047/